Originally posted by marg6043
Interesting article, I also believe that the supremacy of the dollar is compromised it has been since the birth of the Euro.

That is why you may not find anybody in the UK or EU been positive about moving away from the dollar.

But powers are shifting and the dollar will become the less preferable currency to with international.

I agree .. Most people don't know this, but the European Union's economy is actually larger than the US Economy ... regardless of what we do to prop
up our Dollar, the Euro will always be stronger, they export and consume more than the US does. Then when you consider how many member states of the
EU are still considered "developing" ... things don't look good from an American perspective. This could be the re-birth of European Power. (And
the conflicts that arise with such a thing?)

China has no reason to continue buying our debts.. if our Consumer base is on the decline, then China either steps into Post Industrial era, or it
finds a new customer for their goods.. I think we saw the end of massive cheap credit and rapidly expanding equity through real estate.. in all
likelihood our economic growth (unless we see the birth of a new industry) will be very limited from here on out. And it should be noted the industry
of choice (Green) does not produce wealth. Unless you consider paying your electric bill wealth-generating .. or buying "green" Toyotas to be
generating wealth for America. And besides, Indians and Chinese have a larger cheaper educated base of prospective employees to generate such
technologies.

Depends of each other, but China still have an edge, America can not rebuild its industrial base the way it used to be, so America depends on China
for goods China depends on the US to sell to buy those goods.

70 percent of our GDP comes from consumption and China and Asian nations has been growing thanks to that consumerism.

While America still have resources the government doesn't seem very interested on them.

China now depends on the US as much as the US depends on China, but a new currency will defenetily benefit them.

i'm just wondering since this crisis start we have many people making prediction about the fall of the USA, and i have the feeling that we are
living in two diffrent world, the internet world where everybody can read many things about that crisis, and the MSN who talk about it but like we are
not anymore in a crisis and specialy in europe.

and It's official, the U.S. dollar is the currency of reference on tourist sites in India. Last week, at a press conference, Minister of Tourism of
India has confirmed that "given the weakness of that currency, it will no longer be accepted at the sites of state tourism.

End of March, China had caused a sensation by proposing to replace the dollar as international currency, a basket of currencies managed by the IMF. In
the short term, but unrealistic in the longer term, it does not require that and no disadvantages, including the United States, did venture to predict
that she will never see the day.

But China persist and sign. Discreetly. It has just announced that trade between the five cities (including Shanghai) would be in yuan, yet
non-convertible currency. Specifically, the Chinese central bank lending rises cross with its counterparts in other countries to enable local
importers to pay in yuan for goods manufactured in China. So exit the dollar, although at the moment, neither the date nor the modalities of this
operation and although China has not referred to his proposals before G20. No matter publicly humiliate the American partner. Just put pressure.

Brazil would be interested? From April 3 (the day after the G20 therefore), Lula has revealed that he had proposed the day before President Hu Jintao
that trade between the two countries takes place in local currencies rather than in the greenback. These are not empty words: the subject will be on
the agenda of his visit to Beijing on May 19

This is certainly not the end of the hegemony of the dollar but, clearly, emerging countries (we know that Russia supports the idea of China) .

Originally posted by pitchdragon
and It's official, the U.S. dollar is the currency of reference on tourist sites in India. Last week, at a press conference, Minister of Tourism of
India has confirmed that "given the weakness of that currency, it will no longer be accepted at the sites of state tourism.

Hi pitchdragon. Your post reminded of actions taken by the Ministry of Tourism back in
2007. In November 07 , the USD/INR was printing new lows down to 39.08. Today , with the
USD/INR trading at record highs , and a serious slump in Indian tourism revenues , I'm not sure that refusing $USD would be a wise policy.

Originally posted by pitchdragon
i'm just wondering since this crisis start we have many people making prediction about the fall of the USA, and i have the feeling that we are
living in two diffrent world, the internet world where everybody can read many things about that crisis, and the MSN who talk about it but like we are
not anymore in a crisis and specialy in europe.

yea but Who then will finance the deficit by purchasing U.S. treasuries? The Fed !. It will be necessary to create even more dollars out of nothing,
no real wealth, to fund the consequences of American excess.

The faster the printing presses run, it will print more dollars and the dollar will depreciate. In your opinion, why do you think the euro has to go
up $ 1.24 to $ 1.40? Investors are just beginning to realize that the dollar loses its value and turns into monkey currency.
but if the dollars fall actualy we all fall with the dollars.

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